Texas 2023 - 88th 2nd C.S.

Texas Senate Bill SB1 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	By: Bettencourt~~, et al.~~ S.B. No. 1
	1	+	By: Bettencourt S.B. No. 1
2	2
3	3
4	4		A BILL TO BE ENTITLED
5	5		AN ACT
6	6		relating to providing property tax relief through the public school
7	7		finance system, exemptions, and limitations on taxes and providing
8	8		franchise tax relief.
9	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10		ARTICLE 1. SHORT TITLE
11	11		SECTION 1.01. This Act may be cited as the Property Tax and
12	12		Franchise Tax Relief Act.
13	13		ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
14	14		SECTION 2.01. Section 48.255(b), Education Code, is amended
15	15		to read as follows:
16	16		(b) The state compression percentage is the lower of:
17	17		(1) 93 percent, or a lower percentage set by
18	18		appropriation for a school year;
19	19		(2) the percentage determined by the following
20	20		formula:
21	21		SCP = PYCP X 1.0175 [1.025]/(1 + ECPV); or
22	22		(3) the percentage determined under this section for
23	23		the preceding school year.
24	24		SECTION 2.02. Section 48.2551(b), Education Code, is
25	25		amended to read as follows:
26	26		(b) Except as provided by Subsection (c), a district's
27	27		maximum compressed rate ("MCR") is the lesser of:
28	28		(1) the rate determined by the following applicable
29	29		formula:
30	30		(A) if "DPV" exceeds "PYDPV" by an amount equal
31	31		to or greater than 1.75 [2.5] percent:
32	32		MCR = (1.0175 [1.025]((PYDPV+E) X PYMCR))/DPV; or
33	33		(B) if Paragraph (A) does not apply:
34	34		MCR = PYMCR; or
35	35		(2) the product of the state compression percentage,
36	36		as determined under Section 48.255, for the current tax year,
37	37		multiplied by $1.00.
38	38		SECTION 2.03. Subchapter F, Chapter 48, Education Code, is
39	39		amended by adding Sections 48.2555 and 48.283 to read as follows:
40	40		Sec. 48.2555. MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
41	41		SCHOOL YEAR. (a) Notwithstanding any other provision of this title
42	42		or Chapter 26, Tax Code, for the 2023-2024 school year, the
43	43		commissioner shall calculate the value of a school district's
44	44		maximum compressed tax rate by determining the district's maximum
45	45		compressed rate under Section 48.2551 or 48.2552(b), if applicable,
46	46		and reducing the tax rate determined under the applicable section
47	47		by $0.10.
48	48		(b) If a school district's maximum compressed tax rate as
49	49		calculated under Subsection (a) would be less than 90 percent of
50	50		another school district's maximum compressed tax rate under
51	51		Subsection (a), the district's maximum compressed tax rate is the
52	52		value at which the district's maximum compressed tax rate would be
53	53		equal to 90 percent of the other district's maximum compressed tax
54	54		rate.
55	55		(c) Notwithstanding any other provision of this title or
56	56		Chapter 26, Tax Code, for purposes of determining funding for
57	57		school districts for the 2023-2024 school year, a reference in any
58	58		of the following provisions of law to a school district's maximum
59	59		compressed tax rate or maximum compressed rate as determined under
60	60		Section 48.2551 means the maximum compressed tax rate determined
61	61		for the district under this section:
62	62		(1) Section 13.054(f);
63	63		(2) Section 45.003(d);
64	64		(3) Section 45.0032(a);
65	65		(4) Section 48.051(a);
66	66		(5) Sections 48.2553(a) and (e); and
67	67		(6) Section 26.08(n), Tax Code.
68	68		(d) For purposes of Section 30.003(f-1), a reference in that
69	69		section to Section 48.2551 includes this section.
70	70		(e) Notwithstanding any other provision of this title, for
71	71		purposes of determining a school district's maximum compressed tax
72	72		rate under Section 48.2551 for the 2024-2025 school year, the value
73	73		of the district's "PYMCR" is the maximum compressed tax rate
74	74		determined for the district under this section for the preceding
75	75		school year.
76	76		(f) This section expires September 1, 2025.
77	77		Sec. 48.283. ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
78	78		IMPACTED BY COMPRESSION. (a) For the 2023-2024 and 2024-2025
79	79		school years, a school district that received an adjustment under
80	80		Section 48.257(b) for the 2022-2023 school year is entitled to
81	81		additional state aid in an amount equal to the difference, if the
82	82		difference is greater than zero, between:
83	83		(1) the amount of state and local revenue that would
84	84		have been available to the district under this chapter and Chapter
85	85		49 for the current school year if the district's maximum compressed
86	86		tax rate had not been reduced under Section 48.2555, as added by
87	87		S.B. 1, Acts of the 88th Legislature, 2nd Called Session, 2023; and
88	88		(2) the amount of state and local revenue available to
89	89		the district under this chapter and Chapter 49 for the current
90	90		school year.
91	91		(b) This section expires September 1, 2026.
92	92		ARTICLE 3. RESIDENCE HOMESTEAD EXEMPTIONS
93	93		SECTION 3.01. Section 11.13, Tax Code, is amended by
94	94		amending Subsection (b) and adding Subsection (n-1) to read as
95	95		follows:
96	96		(b) An adult is entitled to exemption from taxation by a
97	97		school district of $100,000 [$40,000] of the appraised value of the
98	98		adult's residence homestead, except that only $5,000 of the
99	99		exemption applies to an entity operating under former Chapter 17,
100	100		18, 25, 26, 27, or 28, Education Code, as those chapters existed on
101	101		May 1, 1995, as permitted by Section 11.301, Education Code.
102	102		(n-1) The governing body of a school district,
103	103		municipality, or county that adopted an exemption under Subsection
104	104		(n) for the 2022 tax year may not reduce the amount of or repeal the
105	105		exemption. This subsection expires December 31, 2027.
106	106		SECTION 3.02. Section 11.26, Tax Code, is amended by
107	107		amending Subsections (a), (a-10), and (o) and adding Subsections
108	108		(a-11) and (a-12) to read as follows:
109	109		(a) The tax officials shall appraise the property to which
110	110		this section applies and calculate taxes as on other property, but
111	111		if the tax so calculated exceeds the limitation imposed by this
112	112		section, the tax imposed is the amount of the tax as limited by this
113	113		section, except as otherwise provided by this section. A school
114	114		district may not increase the total annual amount of ad valorem tax
115	115		it imposes on the residence homestead of an individual 65 years of
116	116		age or older or on the residence homestead of an individual who is
117	117		disabled, as defined by Section 11.13, above the amount of the tax
118	118		it imposed in the first tax year in which the individual qualified
119	119		that residence homestead for the applicable exemption provided by
120	120		Section 11.13(c) for an individual who is 65 years of age or older
121	121		or is disabled. If the individual qualified that residence
122	122		homestead for the exemption after the beginning of that first year
123	123		and the residence homestead remains eligible for the same exemption
124	124		for the next year, and if the school district taxes imposed on the
125	125		residence homestead in the next year are less than the amount of
126	126		taxes imposed in that first year, a school district may not
127	127		subsequently increase the total annual amount of ad valorem taxes
128	128		it imposes on the residence homestead above the amount it imposed in
129	129		the year immediately following the first year for which the
130	130		individual qualified that residence homestead for the same
131	131		exemption, except as provided by Subsection (b). [If the first tax
132	132		year the individual qualified the residence homestead for the
133	133		exemption provided by Section 11.13(c) for individuals 65 years of
134	134		age or older or disabled was a tax year before the 2015 tax year, the
135	135		amount of the limitation provided by this section is the amount of
136	136		tax the school district imposed for the 2014 tax year less an amount
137	137		equal to the amount determined by multiplying $10,000 times the tax
138	138		rate of the school district for the 2015 tax year, plus any 2015 tax
139	139		attributable to improvements made in 2014, other than improvements
140	140		made to comply with governmental regulations or repairs.]
141	141		(a-10) Notwithstanding the other provisions of this
142	142		section, if in the 2024 or a subsequent tax year an individual
143	143		qualifies for a limitation on tax increases provided by this
144	144		section on the individual's residence homestead, the amount of the
145	145		limitation provided by this section on the homestead is equal to the
146	146		amount computed by:
147	147		(1) multiplying the taxable value of the homestead in
148	148		the preceding tax year by a tax rate equal to the difference between
149	149		the school district's maximum compressed rate for the preceding tax
150	150		year and the district's maximum compressed rate for the current tax
151	151		year;
152	152		(2) subtracting the amount computed under Subdivision
153	153		(1) from the amount of tax the district imposed on the homestead in
154	154		the preceding tax year; [and]
155	155		(3) adding any tax imposed in the current tax year
156	156		attributable to improvements made in the preceding tax year as
157	157		provided by Subsection (b) to the amount computed under Subdivision
158	158		(2);
159	159		(4) multiplying the amount of any increase in the
160	160		current tax year as compared to the preceding tax year in the
161	161		aggregate amount of the exemptions to which the individual is
162	162		entitled under Sections 11.13(b) and (c) by the school district's
163	163		tax rate for the current tax year; and
164	164		(5) subtracting the amount computed under Subdivision
165	165		(4) from the amount computed under Subdivision (3).
166	166		(a-11) This subsection applies only to an individual who in
167	167		the 2023 tax year qualifies for a limitation under this section and
168	168		for whom the 2022 tax year or an earlier tax year was the first tax
169	169		year the individual or the individual's spouse qualified for an
170	170		exemption under Section 11.13(c). The amount of the limitation
171	171		provided by this section on the residence homestead of an
172	172		individual to which this subsection applies for the 2023 tax year is
173	173		the amount of the limitation as computed under Subsection (a-5),
174	174		(a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less
175	175		an amount equal to the product of $60,000 and the tax rate of the
176	176		school district for the 2023 tax year. This subsection expires
177	177		January 1, 2025.
178	178		(a-12) This subsection applies only to an individual who in
179	179		the 2023 tax year qualifies for a limitation under this section and
180	180		for whom the 2021 tax year or an earlier tax year was the first tax
181	181		year the individual or the individual's spouse qualified for an
182	182		exemption under Section 11.13(c). The amount of the limitation
183	183		provided by this section on the residence homestead of an
184	184		individual to which this subsection applies for the 2023 tax year is
185	185		the amount of the limitation as computed under Subsection (a-11) of
186	186		this section less an amount equal to the product of $15,000 and the
187	187		tax rate of the school district for the 2022 tax year. This
188	188		subsection expires January 1, 2025.
189	189		(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
190	190		improvement to property that would otherwise constitute an
191	191		improvement under Subsection (b) is not treated as an improvement
192	192		under that subsection if the improvement is a replacement structure
193	193		for a structure that was rendered uninhabitable or unusable by a
194	194		casualty or by wind or water damage. For purposes of appraising the
195	195		property in the tax year in which the structure would have
196	196		constituted an improvement under Subsection (b), the replacement
197	197		structure is considered to be an improvement under that subsection
198	198		only if:
199	199		(1) the square footage of the replacement structure
200	200		exceeds that of the replaced structure as that structure existed
201	201		before the casualty or damage occurred; or
202	202		(2) the exterior of the replacement structure is of
203	203		higher quality construction and composition than that of the
204	204		replaced structure.
205	205		SECTION 3.03. Section 46.071, Education Code, is amended by
206	206		amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
207	207		(b-2), and (c-2) to read as follows:
208	208		(a-1) For [Beginning with] the 2022-2023 school year, a
209	209		school district is entitled to additional state aid under this
210	210		subchapter to the extent that state and local revenue used to
211	211		service debt eligible under this chapter is less than the state and
212	212		local revenue that would have been available to the district under
213	213		this chapter as it existed on September 1, 2021, if any increase in
214	214		the residence homestead exemption under Section 1-b(c), Article
215	215		VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd
216	216		Called Session, 2021, had not occurred.
217	217		(a-2) Beginning with the 2023-2024 school year, a school
218	218		district is entitled to additional state aid under this subchapter
219	219		to the extent that state and local revenue used to service debt
220	220		eligible under this chapter is less than the state and local revenue
221	221		that would have been available to the district under this chapter as
222	222		it existed on September 1, 2022, if any increase in a residence
223	223		homestead exemption under Section 1-b(c), Article VIII, Texas
224	224		Constitution, and any additional limitation on tax increases under
225	225		Section 1-b(d) of that article as proposed by the 88th Legislature,
226	226		2nd Called Session, 2023, had not occurred.
227	227		(b-1) Subject to Subsections (c-1), (d), and (e),
228	228		additional state aid under this section for [beginning with] the
229	229		2022-2023 school year is equal to the amount by which the loss of
230	230		local interest and sinking revenue for debt service attributable to
231	231		any increase in the residence homestead exemption under Section
232	232		1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
233	233		Legislature, 3rd Called Session, 2021, is not offset by a gain in
234	234		state aid under this chapter.
235	235		(b-2) Subject to Subsections (c-2), (d), and (e),
236	236		additional state aid under this section beginning with the
237	237		2023-2024 school year is equal to the amount by which the loss of
238	238		local interest and sinking revenue for debt service attributable to
239	239		any increase in a residence homestead exemption under Section
240	240		1-b(c), Article VIII, Texas Constitution, and any additional
241	241		limitation on tax increases under Section 1-b(d) of that article as
242	242		proposed by the 88th Legislature, 2nd Called Session, 2023, is not
243	243		offset by a gain in state aid under this chapter.
244	244		(c-2) For the purpose of determining state aid under
245	245		Subsections (a-2) and (b-2), local interest and sinking revenue for
246	246		debt service is limited to revenue required to service debt
247	247		eligible under this chapter as of September 1, 2023, including
248	248		refunding of that debt, subject to Section 46.061. The limitation
249	249		imposed by Section 46.034(a) does not apply for the purpose of
250	250		determining state aid under this section.
251	251		SECTION 3.04. Section 48.2542, Education Code, is amended
252	252		to read as follows:
253	253		Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
254	254		LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
255	255		Notwithstanding any other provision of this chapter, if a school
256	256		district is not fully compensated through state aid or the
257	257		calculation of excess local revenue under this chapter based on the
258	258		determination of the district's taxable value of property under
259	259		Subchapter M, Chapter 403, Government Code, the district is
260	260		entitled to additional state aid in the amount necessary to fully
261	261		compensate the district for the amount of ad valorem tax revenue
262	262		lost due to a reduction of the amount of the limitation on tax
263	263		increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
264	264		(a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as
265	265		applicable.
266	266		SECTION 3.05. Effective January 1, 2025, Section 48.2542,
267	267		Education Code, is amended to read as follows:
268	268		Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
269	269		LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
270	270		Notwithstanding any other provision of this chapter, if a school
271	271		district is not fully compensated through state aid or the
272	272		calculation of excess local revenue under this chapter based on the
273	273		determination of the district's taxable value of property under
274	274		Subchapter M, Chapter 403, Government Code, the district is
275	275		entitled to additional state aid in the amount necessary to fully
276	276		compensate the district for the amount of ad valorem tax revenue
277	277		lost due to a reduction of the amount of the limitation on tax
278	278		increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
279	279		(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
280	280		applicable].
281	281		SECTION 3.06. Section 48.2543, Education Code, is amended
282	282		to read as follows:
283	283		Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
284	284		(a) For [Beginning with] the 2022-2023 school year, a school
285	285		district is entitled to additional state aid to the extent that
286	286		state and local revenue under this chapter and Chapter 49 is less
287	287		than the state and local revenue that would have been available to
288	288		the district under this chapter and Chapter 49 as those chapters
289	289		existed on September 1, 2021, if any increase in the residence
290	290		homestead exemption under Section 1-b(c), Article VIII, Texas
291	291		Constitution, as proposed by the 87th Legislature, 3rd Called
292	292		Session, 2021, had not occurred.
293	293		(a-1) Beginning with the 2023-2024 school year, a school
294	294		district is entitled to additional state aid to the extent that
295	295		state and local revenue under this chapter and Chapter 49 is less
296	296		than the state and local revenue that would have been available to
297	297		the district under this chapter and Chapter 49 as those chapters
298	298		existed on September 1, 2022, if any increase in a residence
299	299		homestead exemption under Section 1-b(c), Article VIII, Texas
300	300		Constitution, and any additional limitation on tax increases under
301	301		Section 1-b(d) of that article as proposed by the 88th Legislature,
302	302		2nd Called Session, 2023, had not occurred.
303	303		(b) The lesser of the school district's currently adopted
304	304		maintenance and operations tax rate or the adopted maintenance and
305	305		operations tax rate for:
306	306		(1) the 2021 tax year is used for the purpose of
307	307		determining additional state aid under Subsection (a); and
308	308		(2) the 2022 tax year is used for the purpose of
309	309		determining additional state aid under Subsection (a-1).
310	310		SECTION 3.07. Section 48.2556(a), Education Code, is
311	311		amended to read as follows:
312	312		(a) The agency shall post the following information on the
313	313		agency's Internet website for purposes of allowing the chief
314	314		appraiser of each appraisal district and the assessor for each
315	315		school district to make the calculations required by Sections
316	316		11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and
317	317		(a-12), Tax Code:
318	318		(1) each school district's maximum compressed rate, as
319	319		determined under Section 48.2551, for each tax year beginning with
320	320		the 2019 tax year; and
321	321		(2) each school district's tier one maintenance and
322	322		operations tax rate, as provided by Section 45.0032(a), for the
323	323		2018 tax year.
324	324		SECTION 3.08. Effective January 1, 2025, Section
325	325		48.2556(a), Education Code, is amended to read as follows:
326	326		(a) For purposes of allowing the chief appraiser of each
327	327		appraisal district and the assessor for each school district to
328	328		make the calculations required by Section 11.26(a-10), Tax Code,
329	329		the [The] agency shall post [the following information] on the
330	330		agency's Internet website [for purposes of allowing the chief
331	331		appraiser of each appraisal district and the assessor for each
332	332		school district to make the calculations required by Sections
333	333		11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
334	334		[(1)] each school district's maximum compressed rate,
335	335		as determined under Section 48.2551, for the current [each] tax
336	336		year and the preceding [beginning with the 2019] tax year[; and
337	337		[(2) each school district's tier one maintenance and
338	338		operations tax rate, as provided by Section 45.0032(a), for the
339	339		2018 tax year].
340	340		SECTION 3.09. Section 49.004, Education Code, is amended by
341	341		adding Subsections (a-1), (b-1), and (c-1) to read as follows:
342	342		(a-1) This subsection applies only if the constitutional
343	343		amendment proposed by S.J.R. 1, 88th Legislature, 2nd Called
344	344		Session, 2023, is approved by the voters in an election held for
345	345		that purpose. As soon as practicable after receiving revised
346	346		property values that reflect adoption of the constitutional
347	347		amendment, the commissioner shall review the local revenue level of
348	348		districts in the state and revise as necessary the notifications
349	349		provided under Subsection (a) for the 2023-2024 school year. This
350	350		subsection expires September 1, 2024.
351	351		(b-1) This subsection applies only to a district that has
352	352		not previously held an election under this chapter. Notwithstanding
353	353		Subsection (b), a district that enters into an agreement to
354	354		exercise an option to reduce the district's local revenue level in
355	355		excess of entitlement under Section 49.002(3), (4), or (5) for the
356	356		2023-2024 school year may request and, as provided by Section
357	357		49.0042(a), receive approval from the commissioner to delay the
358	358		date of the election otherwise required to be ordered before
359	359		September 1. This subsection expires September 1, 2024.
360	360		(c-1) Notwithstanding Subsection (c), a district that
361	361		receives approval from the commissioner to delay an election as
362	362		provided by Subsection (b-1) may adopt a tax rate for the 2023 tax
363	363		year before the commissioner certifies that the district has
364	364		reduced its local revenue level to the level established by Section
365	365		48.257. This subsection expires September 1, 2024.
366	366		SECTION 3.10. Subchapter A, Chapter 49, Education Code, is
367	367		amended by adding Section 49.0042 to read as follows:
368	368		Sec. 49.0042. TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD
369	369		EXEMPTIONS AND LIMITATION ON TAX INCREASES. (a) The commissioner
370	370		shall approve a district's request under Section 49.004(b-1) to
371	371		delay the date of an election required under this chapter if the
372	372		commissioner determines that the district would not have a local
373	373		revenue level in excess of entitlement if the constitutional
374	374		amendment proposed by S.J.R. 1, 88th Legislature, 2nd Called
375	375		Session, 2023, were approved by the voters.
376	376		(b) The commissioner shall set a date by which each district
377	377		that receives approval under this section must order the election.
378	378		(c) Not later than the 2024-2025 school year, the
379	379		commissioner shall order detachment and annexation of property
380	380		under Subchapter G or consolidation under Subchapter H as necessary
381	381		to reduce the district's local revenue level to the level
382	382		established by Section 48.257 for a district that receives approval
383	383		under this section and subsequently:
384	384		(1) fails to hold the election; or
385	385		(2) does not receive voter approval at the election.
386	386		(d) This section expires September 1, 2025.
387	387		SECTION 3.11. Subchapter A, Chapter 49, Education Code, is
388	388		amended by adding Section 49.0121 to read as follows:
389	389		Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This
390	390		section applies only to an election under this chapter that occurs
391	391		during the 2023-2024 school year.
392	392		(b) Section 49.012 does not apply to a district that
393	393		receives approval of a request under Section 49.0042. The district
394	394		shall hold the election on a Tuesday or Saturday on or before a date
395	395		specified by the commissioner. Section 41.001, Election Code, does
396	396		not apply to the election.
397	397		(c) This section expires September 1, 2024.
398	398		SECTION 3.12. Section 49.154, Education Code, is amended by
399	399		adding Subsections (a-2) and (a-3) to read as follows:
400	400		(a-2) Notwithstanding Subsections (a) and (a-1), a district
401	401		that receives approval of a request under Section 49.0042 shall pay
402	402		for credit purchased:
403	403		(1) in equal monthly payments as determined by the
404	404		commissioner beginning March 15, 2024, and ending August 15, 2024;
405	405		or
406	406		(2) in the manner provided by Subsection (a)(2),
407	407		provided that the district notifies the commissioner of the
408	408		district's election to pay in that manner not later than March 15,
409	409		2024.
410	410		(a-3) Subsection (a-2) and this subsection expire September
411	411		1, 2024.
412	412		SECTION 3.13. Section 49.308, Education Code, is amended by
413	413		adding Subsection (a-1) to read as follows:
414	414		(a-1) Notwithstanding Subsection (a), for the 2023-2024
415	415		school year, the commissioner shall order any detachments and
416	416		annexations of property under this subchapter as soon as
417	417		practicable after the canvass of the votes on the constitutional
418	418		amendment proposed by S.J.R. 1, 88th Legislature, 2nd Called
419	419		Session, 2023. This subsection expires September 1, 2024.
420	420		SECTION 3.14. Section 403.302, Government Code, is amended
421	421		by amending Subsection (j-1) and adding Subsection (j-2) to read as
422	422		follows:
423	423		(j-1) In the final certification of the study under
424	424		Subsection (j), the comptroller shall separately identify the final
425	425		taxable value for each school district as adjusted to account for
426	426		the reduction of the amount of the limitation on tax increases
427	427		provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
428	428		(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
429	429		(j-2) In the final certification of the study under
430	430		Subsection (j), the comptroller shall separately identify the final
431	431		taxable value for each school district as adjusted to account for
432	432		the reduction of the amount of the limitation on tax increases
433	433		provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9),
434	434		(a-10), (a-11), and (a-12), Tax Code. This subsection expires
435	435		January 1, 2025.
436	436		SECTION 3.15. Section 25.23, Tax Code, is amended by adding
437	437		Subsection (a-1) to read as follows:
438	438		(a-1) This subsection applies only to the appraisal records
439	439		for the 2023 tax year. The chief appraiser shall prepare
440	440		supplemental appraisal records to account for the changes in law
441	441		made by S.B. 1, Acts of the 88th Legislature, 2nd Called Session,
442	442		2023. This subsection expires December 31, 2024.
443	443		SECTION 3.16. Section 26.04, Tax Code, is amended by adding
444	444		Subsections (a-1) and (c-1) to read as follows:
445	445		(a-1) On receipt of the appraisal roll for the 2023 tax
446	446		year, the assessor for a school district shall determine the total
447	447		taxable value of property taxable by the district and the taxable
448	448		value of new property as if the changes in law made by S.B. 1, Acts
449	449		of the 88th Legislature, 2nd Called Session, 2023, were in effect
450	450		for that tax year. This subsection expires December 31, 2024.
451	451		(c-1) An officer or employee designated by the governing
452	452		body of a school district shall calculate the no-new-revenue tax
453	453		rate and the voter-approval tax rate of the district for the 2023
454	454		tax year as if the changes in law made by S.B. 1, Acts of the 88th
455	455		Legislature, 2nd Called Session, 2023, were in effect for that tax
456	456		year. This subsection expires December 31, 2024.
457	457		SECTION 3.17. Section 26.08, Tax Code, is amended by adding
458	458		Subsection (q) to read as follows:
459	459		(q) For purposes of this section, the voter-approval tax
460	460		rate of a school district for the 2023 tax year shall be calculated
461	461		as if the changes in law made by S.B. 1, Acts of the 88th
462	462		Legislature, 2nd Called Session, 2023, were in effect for that tax
463	463		year. This subsection expires December 31, 2024.
464	464		SECTION 3.18. Section 26.09, Tax Code, is amended by adding
465	465		Subsection (c-1) to read as follows:
466	466		(c-1) The assessor for a school district shall calculate the
467	467		amount of tax imposed by the district on a residence homestead for
468	468		the 2023 tax year as if the changes in law made by S.B. 1, Acts of
469	469		the 88th Legislature, 2nd Called Session, 2023, were in effect for
470	470		that tax year and also as if the changes in law made by that Act were
471	471		not in effect for that tax year. This subsection expires December
472	472		31, 2024.
473	473		SECTION 3.19. Section 26.15, Tax Code, is amended by adding
474	474		Subsection (h) to read as follows:
475	475		(h) The assessor for a school district shall correct the tax
476	476		roll for the district for the 2023 tax year to reflect the results
477	477		of the election to approve the constitutional amendment proposed by
478	478		S.J.R. 1, 88th Legislature, 2nd Called Session, 2023. This
479	479		subsection expires December 31, 2024.
480	480		SECTION 3.20. Section 31.01, Tax Code, is amended by adding
481	481		Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
482	482		(d-2) This subsection and Subsections (d-3) and (d-4) apply
483	483		only to taxes imposed by a school district on a residence homestead
484	484		for the 2023 tax year and only if the changes in law made by S.B. 1,
485	485		Acts of the 88th Legislature, 2nd Called Session, 2023, would lower
486	486		the taxes imposed by the district on the property for that tax year.
487	487		The assessor for the district shall compute the amount of taxes
488	488		imposed and the other information required by this section as if the
489	489		changes in law made by S.B. 1, Acts of the 88th Legislature, 2nd
490	490		Called Session, 2023, were in effect for that tax year. The tax
491	491		bill or the separate statement must indicate that the bill is a
492	492		provisional tax bill and include a statement in substantially the
493	493		following form:
494	494		"If the Texas Legislature had not enacted property tax relief
495	495		legislation during the 2023 legislative session, your tax bill
496	496		would have been $____ (insert amount of tax bill if the changes in
497	497		law made by S.B. 1, Acts of the 88th Legislature, 2nd Called
498	498		Session, 2023, were not in effect for that tax year). Because of
499	499		action by the Texas Legislature, your tax bill has been lowered by
500	500		$____ (insert difference between amount of tax bill if the changes
501	501		in law made by S.B. 1, Acts of the 88th Legislature, 2nd Called
502	502		Session, 2023, were not in effect for that tax year and amount of
503	503		tax bill if that Act were in effect for that tax year), resulting in
504	504		a lower tax bill of $____ (insert amount of tax bill if the changes
505	505		in law made by S.B. 1, Acts of the 88th Legislature, 2nd Called
506	506		Session, 2023, were in effect for that tax year), contingent on the
507	507		approval by the voters at an election to be held November 7, 2023,
508	508		of the constitutional amendment proposed by S.J.R. 1, 88th
509	509		Legislature, 2nd Called Session, 2023. If that constitutional
510	510		amendment is not approved by the voters at the election, a
511	511		supplemental tax bill in the amount of $____ (insert difference
512	512		between amount of tax bill if the changes in law made by S.B. 1, Acts
513	513		of the 88th Legislature, 2nd Called Session, 2023, were not in
514	514		effect for that tax year and amount of tax bill if that Act were in
515	515		effect for that tax year) will be mailed to you."
516	516		(d-3) A tax bill prepared by the assessor for a school
517	517		district as provided by Subsection (d-2) and mailed as provided by
518	518		Subsection (a) is considered to be a provisional tax bill until the
519	519		canvass of the votes on the constitutional amendment proposed by
520	520		S.J.R. 1, 88th Legislature, 2nd Called Session, 2023. If the
521	521		constitutional amendment is approved by the voters, the tax bill is
522	522		considered to be a final tax bill for the taxes imposed on the
523	523		property for the 2023 tax year, and no additional tax bill is
524	524		required to be mailed unless another provision of this title
525	525		requires the mailing of a corrected tax bill. If the constitutional
526	526		amendment is not approved by the voters:
527	527		(1) a tax bill prepared by the assessor as provided by
528	528		Subsection (d-2) is considered to be a final tax bill but only as to
529	529		the portion of the taxes imposed on the property for the 2023 tax
530	530		year that are included in the bill;
531	531		(2) the amount of taxes imposed by each school
532	532		district on a residence homestead for the 2023 tax year is
533	533		calculated as if the changes in law made by S.B. 1, Acts of the 88th
534	534		Legislature, 2nd Called Session, 2023, were not in effect for that
535	535		tax year; and
536	536		(3) except as provided by Subsections (f), (i-1), and
537	537		(k), the assessor for each school district shall prepare and mail a
538	538		supplemental tax bill, by December 1 or as soon thereafter as
539	539		practicable, in an amount equal to the difference between the
540	540		amount of the tax bill if the changes in law made by S.B. 1, Acts of
541	541		the 88th Legislature, 2nd Called Session, 2023, were not in effect
542	542		for that tax year and the amount of the tax bill if that Act were in
543	543		effect for that tax year.
544	544		(d-4) Except as otherwise provided by Subsection (d-3), the
545	545		provisions of this section other than Subsection (d-2) apply to a
546	546		supplemental tax bill mailed under Subsection (d-3).
547	547		(d-5) This subsection and Subsections (d-2), (d-3), and
548	548		(d-4) expire December 31, 2024.
549	549		SECTION 3.21. Section 31.02, Tax Code, is amended by adding
550	550		Subsection (a-1) to read as follows:
551	551		(a-1) Except as provided by Subsection (b) of this section
552	552		and Sections 31.03 and 31.04, taxes for which a supplemental tax
553	553		bill is mailed under Section 31.01(d-3) are due on receipt of the
554	554		tax bill and are delinquent if not paid before March 1 of the year
555	555		following the year in which imposed. This subsection expires
556	556		December 31, 2024.
557	557		SECTION 3.22. (a) Sections 11.26(a-1), (a-2), and (a-3),
558	558		Tax Code, are repealed.
559	559		(b) Effective January 1, 2025, Sections 11.26(a-5), (a-6),
560	560		(a-7), (a-8), and (a-9), Tax Code, are repealed.
561	561		SECTION 3.23. The changes in law made by this article to
562	562		Sections 11.13 and 11.26, Tax Code, apply beginning with the ad
563	563		valorem tax year that begins January 1, 2023.
564	564		ARTICLE 4. DETERMINATION AND REPORTING OF FRANCHISE TAX LIABILITY
565	565		SECTION 4.01. Section 171.002(d), Tax Code, is amended to
566	566		read as follows:
567	567		(d) A taxable entity is not required to pay any tax and is
568	568		not considered to owe any tax for a period if:
569	569		(1) the amount of tax computed for the taxable entity
570	570		is less than $1,000; or
571	571		(2) the amount of the taxable entity's total revenue
572	572		from its entire business is less than or equal to $2.47 [$1] million
573	573		or the amount determined under Section 171.006 per 12-month period
574	574		on which margin is based.
575	575		SECTION 4.02. Section 171.204(b), Tax Code, is amended to
576	576		read as follows:
577	577		(b) The comptroller may not require a taxable entity that
578	578		does not owe any tax because of the application of Section
579	579		171.002(d)(2) to file an [abbreviated] information report with the
580	580		comptroller [stating the amount of the taxable entity's total
581	581		revenue from its entire business. The comptroller may not require
582	582		a taxable entity described by this subsection to file an
583	583		information report that requires the taxable entity to report or
584	584		compute its margin].
585	585		SECTION 4.03. Section 171.204(d), Tax Code, is repealed.
586	586		SECTION 4.04. The changes in law made by this article apply
587	587		only to a report originally due on or after January 1, 2024.
588	588		ARTICLE 5. EFFECTIVE DATES
589	589		SECTION 5.01. Except as otherwise provided by this article,
590	590		this Act takes effect on the 91st day after the last day of the
591	591		legislative session.
592	592		SECTION 5.02. (a) Except as provided by Subsection (b) of
593	593		this section or as otherwise provided by Article 3 of this Act:
594	594		(1) Article 3 of this Act takes effect on the date on
595	595		which the constitutional amendment proposed by S.J.R. 1, 88th
596	596		Legislature, 2nd Called Session, 2023, takes effect; and
597	597		(2) if that amendment is not approved by the voters,
598	598		Article 3 of this Act has no effect.
599	599		(b) Sections 49.004(a-1), (b-1), and (c-1), 49.0042,
600	600		49.0121, 49.154(a-2) and (a-3), and 49.308(a-1), Education Code,
601	601		and Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q),
602	602		26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and
603	603		31.02(a-1), Tax Code, as added by Article 3 of this Act, take effect
604	604		immediately if this Act receives a vote of two-thirds of all the
605	605		members elected to each house, as provided by Section 39, Article
606	606		III, Texas Constitution. If this Act does not receive the vote
607	607		necessary for those sections to have immediate effect, those
608	608		sections take effect on the 91st day after the last day of the
609	609		legislative session.
610	610		SECTION 5.03. Article 4 of this Act takes effect January 1,
611	611		2024.